Modi said the step was taken to control the menace of black money in the country, which has sapped the economy.

The Prime Minister said that the Rs 500 and Rs 1,000 denomination notes can be deposited in banks and post offices, and also exchanged across the bank counter by showing government-issued ID proof. (File Photo)

To tackle the menace of black money, Prime Minister Narendra Modi on Tuesday announced that Rs 500 and Rs 1,000 denomination notes are being withdrawn from midnight. He said that such notes will become “mere paper”. Modi said the step was taken to control the menace of black money in the country, which has sapped the economy. The decisions come after a cabinet meeting.

The Prime Minister said that the Rs 500 and Rs 1,000 denomination notes can be deposited in banks and post offices, and also exchanged across the bank counter by showing government-issued ID proof. He also said that ATM withdrawals will be restricted to Rs 2,000 per day till November 11, when this limit may be increased slowly.

Withdrawals from bank accounts will be limited to Rs 10,000 for the first few days.

Here is how politicians reacted

Chandrababu Naidu (Andhra Pradesh Chief Minister): This a major step forward towards wiping out black money. This will also pave the way for eliminating corruption.

Amit Shah (BJP President): We feel proud of PM Narendra Modi ji’s surgical strike against black money and corruption. His decision to discontinue Rs 500 and Rs 1000 rupee note will immensely help in eliminating corruption. On behalf of all BJP karyakartas, I compliment the Central government and the PM for taking tough but timely and path-breaking measures.

Baba Ramdev: Would like to congratulate PM Modi on making such a good decision, on black money

Shivraj Singh Chouhan (Madhya Pradesh Chief Minister): This decision will take us way forward, which has been made for the benefit of the nation

Randeep Singh Surjewala (Congress): What happens to those who are going to buy necessary articles for marriages including jewellery, clothes etc? Are you not putting cumbersome burden on them by putting a limit on how much money can be withdrawn? While Modi ji withdraws Rs 1000 note on one side, he introduces Rs2000 note on the other side?Does it not defeat his own argument?

Mohammed Salim (CPI(M) politburo member): “We are always in support of unearthing black money. But after 2.5 years of silence on the issue, the Centre all of a sudden decided to scarp the Rs 500 and Rs 1,000 notes. This is nothing but absurd. This decision will have a drastic impact on small traders and the middle class.”

Mamata Banerjee (West Bengal Chief Minister): Heartless and ill- conceived blow on the common people and the middle class in the fake name of anti-corruption. Withdraw this draconian decision.